Structural Adjustment Programme and the Nigerian Economy: the Gains and Losses
INTRODUCTION The Nigerian economy has several activities sectors which include agriculture (crops), livestock, forestry, fishing, manufacturing, crude petroleum mining and quarrying, utilities, building and construction, transport, communication, wholesale and retail trades, hotels and restaurants, finance and insurance, real estate and business services, housing, producers of government services and community, social and personal services. However, with the advent of the crude petroleum sector and its attendant boom in the international market, all other sectors of the Nigerian economy have experienced serious neglect by the government, thus resulting to an unbalanced economy.
Nigeria’s population as a nation is so large that no single sector can meet all her needs, no matter how viable it may be. This explains why there is so much unemployment, increase in importation of food items, fruits and vegetables, low out in gross domestic products (GDP), low rate of per capita income, hunger and starvation, increase in social vices and continual fall in the external reserve of the country, to mention a few. Based on the above economic problems, worsening terms of trade, and a heavy foreign debt overhang, the Military regime of General Ibrahim Badamosi Babangida introduced some measures in order to bring about a balanced economic structure. And one the economic measures is the Structural Adjustment Programme (SAP) which was introduced on 26th September 1986.
HISTORICAL BACKGROUND OF SAP IN NIGERIA Nigeria had experienced a period of healthy increases in exports in 1970s. And thereafter, the growth slowed and then plunged into negative levels between 1981 and 1986. Even agricultural exports slipped, from a previous healthy position to a dismal one in the 1980s. The nation also lost ground in its exports of ores and minerals. Only in oil did Nigeria improve its export share. Curiously, Nigeria failed to diversify her export base but continued to rely
Nigeria’s population as a nation is so large that no single sector can meet all her needs, no matter how viable it may be. This explains why there is so much unemployment, increase in importation of food items, fruits and vegetables, low out in gross domestic products (GDP), low rate of per capita income, hunger and starvation, increase in social vices and continual fall in the external reserve of the country, to mention a few. Based on the above economic problems, worsening terms of trade, and a heavy foreign debt overhang, the Military regime of General Ibrahim Badamosi Babangida introduced some measures in order to bring about a balanced economic structure. And one the economic measures is the Structural Adjustment Programme (SAP) which was introduced on 26th September 1986.
HISTORICAL BACKGROUND OF SAP IN NIGERIA Nigeria had experienced a period of healthy increases in exports in 1970s. And thereafter, the growth slowed and then plunged into negative levels between 1981 and 1986. Even agricultural exports slipped, from a previous healthy position to a dismal one in the 1980s. The nation also lost ground in its exports of ores and minerals. Only in oil did Nigeria improve its export share. Curiously, Nigeria failed to diversify her export base but continued to rely
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